U.S. Modern Logistics: record-breaking growth – will 2022 be another record year?
April 1, 2022 15 Minute Read Time
U.S. modern logistics had a record-breaking year in 2021. Demand, rental growth and investment activity all scaled new heights. 2022 seems to promise more of the same. Long-term demand drivers are still in play, so much so new supply will struggle to satisfy forecast demand growth – CBRE estimates 1.33 billion sq. ft. of new space will be needed in the U.S. to meet growing demand from e-commerce and supply chain reconfiguration by 2025. But occupiers are getting more demanding. No longer viewed as just a necessary cost, today logistics space is integral to business models. A deep understanding of what occupiers are looking for is therefore paramount. With rental growth and cap rates setting new records and with over 1 billion sq. ft. of leasing activity completed during the year, U.S. modern logistics was a record breaker in 2021. Highly favorable demand/supply dynamics lie behind the exceptional performance: demand being driven by structural drivers, such as e-commerce growth and supply chain reconfiguration; supply, already having to catch-up on ground lost during the pandemic, struggling to match demand.